Indus Motor Company Board announces FY2010-11 financial results

Karachi: Board of Directors of Indus Motor Company Ltd., Wednesday reviewed company’s financial and operating performance for year ended June 30, 2011 during which sales revenue rose to Rs 61.7 billion up by 2.7% over Rs 60.1 billion of last year and after tax profit declined to Rs 2.7 billion low by 21% of Rs 3.4 billion of last year.

IMC press release Wednesday said sales and production of Indus Motor’s Toyota & Daihatsu brands for year ended June 30, 2011 were 50,943 units and 50,759 units respectively, compared with last year’s 52,063 units and 50,557 units respectively. Nationwide sales of locally assembled passenger cars (PC) & light commercial vehicles (LCV) rose by around 3.4% over previous year to 146,497 units as compared to 141,654 units sold in 2009-10.

Production in industry also increased to 153,997 units for period ended June 30, 11, increase of 11% over 138,587 units last year. Liberalization of used car policy saw increase of 87% in number of used vehicle imports to 6,793 units in fiscal period. If such policy continues it will impede growth of auto industry, press release said.

Unprecedented floods and destruction in supply chain due to earthquake, tsunami in Japan, compounded with a general slow down in economic environment, lower GDP growth, rising interest rates, limited credit availability for auto financing, Pak Rupee depreciation against major currencies, unprecedented rise in prices of steel, other inputs, inflation, impacted demand negatively.

IMC Board lauded Company’s performance and declared final cash dividend of Rs 10 per share during the year, making for total of Rs 15 per share during year. Total dividend paid for same period last year was Rs 15 per share. IMC requested government to take note of recommendations made by Pakistan Automobile Manufacturers Association to accelerate growth of local industry and thanked for withdrawal of 2.5% Special Excise Duty and decrease of 1% Sales Tax.

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